Andrea Squatrito, the founder of RE Analytics, has published his view along with his report which indicates the Swiss Watchmakers – Rolex in particular, could face the 1970s like Quartz Crisis again from the Smartwatch industry. Squatrito identifies two customer groups that constitute 83% of Rolex’s business. The first group ranges between is $2,675 – $11,770 and the second group $24,610 – $35,310. Squatrito believes that the lower-end watch buyers could shift to Apple Watch Hermès or similar options which retail at about $1,500.
The smartwatch industry hasn’t even reached its full potential yet. These smartwatches still seem to be in their early prototype phase where it is not good enough for the traditional watch wearers. Still, the smartwatches are making their presence felt. If Squatrito’s prediction turns out to be true, this will push the remaining watchmakers to close their doors and push the remaining the watchmakers to make only the high-end luxury models.